Kiliwani North Development

Kiliwani North Development Licence

Aminex, through Ndovu Resources, holds an operating participating interest of 63.83% in KNDL with partners RAK Gas (27.78%) and Scirocco Energy (8.39%)

Following the drilling of a gas discovery well – Kiliwani North-1 (KN-1) – on the eastern flank of Songo Songo Island in 2008 an application was made to the Tanzanian authorities for a Development Licence to be carved out of the original Nyuni East Songo Songo Area PSA (NESS PSA) to facilitate development and commercial production from the well. The NESS PSA had been awarded to Ndovu Resources in 1999.

KN-1 was drilled into a fault block downdip and immediately to the east of the large Songo Songo Field, operated by Pan African Energy Tanzania (PAET) and encountered a sandstone reservoir in the Cretaceous Neocomian with gas pay and the interval tested at a maximum rate of 40 MMscf/d. The Kiliwani North Development Licence (KNDL) was issued in 2011 for a period of 25 years in which to develop and produce the discovered gas volumes subsequently independently estimated to be 28 BCF gross recoverable gas (2C estimate) in 2015 by LR Senergy.

The well was produced at an average rate of 15 MMscf/d however, from the outset of production, the wellhead pressure declined and production ceased in October 2017 due to wellhead pressure having declined to the Songo Songo Gas Processing Facility (SSGPF) inlet pressure of 50bar. During the period of production, ca. 6.5 BCF gas was produced from a reservoir compartment estimated to be in connection with ca. 10 BCF gas-in-place. The well has remained shut-in since 2017.

In 2018, RPS Energy independently audited the estimated gas resources and concluded that the Kiliwani North structure , as defined by existing 2D seismic data, contained approximately 31 BCF gross mean gas-in-place in multiple reservoir compartments. Additionally, a potentially separate structure identified as Kiliwani South, was estimated by Aminex to contain 57 BCF (unrisked mean gas-in-place) and reviewed by RPS Energy in their 2018 Competent Person’s Report.

Aminex, though Ndovu Resources, holds an operating participating interest of 63.83% in KNDL with partners RAK Gas (27.78%) and Scirocco Energy (8.39%)

Any future drilling activity on KNDL is contingent upon improved seismic resolution of the target structures and the degree of fault compartmentalisation that could be determined with new seismic. Ideally, such seismic would be high resolution 3D and not only cover KNDL but also extend eastwards to better determine the prospectivity within Aminex’s 100 % participating interest in the Nyuni Area PSA.